Life Settlements for Seniors
You may have a hidden asset that your are unaware of. Until recently, the owner of a life insurance policy that was unneeded or unwanted had two options - cash surrender or lapse the policy. Now, a senior settlement enables a policy owner to sell their policy for an upfront stated amount which is determined by the cost of the policy and the insured's life expectancy. This transaction involves the transfer of ownership of an in-force policy to the purchaser of course. For the most part, this only applies to those who are 65 and older. Generally speaking, those age 74 or younger will not have a great chance at selling unless there is a health impediment involved. The many considerations for contemplating to sell a life insurance policy are as follows:
The original reason for purchasing the life insurance policy no longer exists due to a spouse passing.
The purchase of other insurance products, possibly survivorship life or long term care or even replacement for a new policy.
The policy owner wants to make a gift to a family member while he or she can witness the recipient's enjoyment of it.
The policy owner wants to provide funds to a favorite charity.
Many seniors own term life insurance policies which by nature have zero value. Not the case! If the term life policy has a conversion feature it could very well be sold as a senior settlement. It is important to be aware of this as a senior as many conversion features end at a certain age. Make sure you consult a professional that can help you to determine the value of your life insurance policy.
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